SPROCKET CAPITAL LIMITED

Executive Summary

SPROCKET CAPITAL LIMITED currently exhibits minimal financial activity and extremely limited resources, indicating poor financial health and operational dormancy. To improve its prognosis, the company must either commence active trading with sufficient capital investment or formally adopt dormant status to prevent unnecessary costs. Immediate strategic planning and cash infusion are essential to revive financial vitality.

SPROCKET CAPITAL LIMITED - Analysis Report

Company Number: 13105993

Analysis Date: 2025-07-19 12:32 UTC

Certainly, let's conduct a thorough financial health assessment of SPROCKET CAPITAL LIMITED, applying a medical diagnostic approach to understand the company's financial wellbeing.

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1. Financial Health Score: D (Poor)

Explanation:
The company shows minimal financial activity and very limited financial resources, indicating poor financial health. The static figures year-on-year suggest a lack of operational activity or growth, which is concerning for sustainability. This low-grade score reflects symptoms of financial dormancy or distress, necessitating urgent attention.

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2. Key Vital Signs (Core Financial Metrics):

Metric	Value (2024)	Interpretation
Current Assets	£1	Critically low cash or liquid asset position; indicates virtually no operational cash buffer.
Net Current Assets	£1	No meaningful working capital; inability to cover short-term liabilities (although none reported).
Shareholders' Funds	£1	Minimal equity; reflects very low capital investment or retained earnings.
Employees	0	No workforce; no operational capacity or revenue generation capability.
Filing Status	Up to date	Positive sign: compliant with statutory filing deadlines; no penalties or legal distress.
Account Category	Micro	Smallest company size; minimal filing requirement; may reflect a startup or dormant entity.
Industry Classification	IT Consultancy	Sector implies potential for service-based revenue; however, no financial activity evident.

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3. Diagnosis: What the Financial Data Reveals

SPROCKET CAPITAL LIMITED exhibits symptoms akin to a patient with a "flatline" financial condition:

• Minimal Asset Base: The company holds only £1 in current assets consistently over multiple years, suggesting no operational cash flow or asset accumulation. This is comparable to a patient with negligible vital signs.
• No Operational Activity: The absence of employees and no reported revenue or profit figures indicate the business is not actively trading or generating income.
• Micro-entity Status: While providing simplified reporting, this also indicates the company is at the smallest scale, possibly a shell company or one held for future use.
• Equity Capital: Share capital of £1 implies minimal financial injection from shareholders.
• No Audit Requirement: The company is exempt from audit due to size, but the lack of detailed financial data like profit and loss statements limits insight into operational health.
• Director and Control: The director and controlling shareholder are clearly identified, but no indication of active management or business development.

Underlying Issues (Symptoms of Distress):

• Lack of operational cash flow or revenue streams.
• Absence of growth or investment.
• Potentially dormant or inactive status despite being "active" legally.
• Risk of insolvency if any liabilities were to arise, as no financial buffer exists.

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4. Recommendations: Specific Actions to Improve Financial Wellness

1. Activate Business Operations or Formal Dormant Status:
   If the company intends to trade, it needs to initiate commercial activities, generate revenue, and manage cash flow. Otherwise, it should consider formal dormant status to reduce ongoing compliance costs and regulatory risks.

2. Increase Capital Injection:
   Infuse working capital to build a cash buffer, enabling operational expenses, marketing, and potential hiring to stimulate business growth.

3. Develop a Business Plan:
   Establish a clear strategy and financial projections, focusing on client acquisition and revenue generation within the IT consultancy sector.

4. Employ Financial Controls and Reporting:
   Even as a micro-entity, maintaining detailed records and periodic management accounts will help monitor financial health and detect early warning signs.

5. Engage Professional Advisory:
   Seek guidance to assess viability and structure operations effectively, potentially exploring partnerships or funding opportunities.

6. Regular Review of Financial Position:
   Monitor cash flow and working capital closely, ensuring the company does not fall into financial distress unnoticed.

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